Wärtsilä (WRT1V) Pre-silent call summary

Executive summary

• Completed divestments of marine electrical systems (MES) and ANCS, with Gas Solutions divestment expected by Q2 2026, streamlining the portfolio to focus on core businesses.

• Order book adjustments reflect these divestments, with significant revenue and order book removals.

• Decarbonization and fuel efficiency remain central themes, with regulatory drivers supporting continued demand.

• Data center opportunities are expanding, with lead times now extending into 2027.

• Energy storage remains a challenge, though Q4 showed improvement in order intake.

Trading performance and revenue trends

• Marine segment shows strong activity, especially in cruise and ferry, with bookings at record levels.

• Energy segment stable in baseload, with growth in balancing power and data center-related projects.

• MES contributed €100M in annual revenue in 2024 before divestment.

• ANCS generated close to €230M in annual revenue in 2024 and was the most profitable unit in the portfolio.

• Gas Solutions, with €300M in 2024 revenue, is set for divestment by Q2 2026.

Profitability and margins

• Margin target of 14% is for marine and energy combined, with energy currently outperforming marine.

• Q3 margins benefited from contingency releases on storage projects; future margin sustainability depends on project execution.

• Value-based pricing is applied, especially in data center projects, leveraging strong demand and delivery capability.

• ANCS represented 80% of the portfolio business's operating result in H1 2025, highlighting its profitability.